Stocks and gold: divorcing before our eyes

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Hysteria

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Stocks and gold: divorcing before our eyes

in response to

Re: Gold Might Break Out Tomorrow, According To Arch Crawford.

sthgold

posted on Oct 16, 2009 12:41PM

This is huge. We have all seen how over the 7-8 months gold and the overall stock market have moved in exact lock-step with eachother. The pattern was clear as day:

dollar down -- stocks up -- gold up -- gold stocks up

OR (the inverse)

dollar up -- stocks down -- gold down -- gold stocks down

I submit to you that in the last three days, we are witnessing the change in this dynamic. Today it is obvious. We have not seen this for literally the last six months. It may take a few more days or weeks to complete, but today we are seeing:

dollar DOWN -- stocks DOWN -- gold UP -- gold stocks UP

See the following chart: http://search.finance.yahoo.com/q/bc?t=5d&s=SPY&l=on&z=l&q=l&c=gld

The split began late Wednesday according to the chart. This is how the DOW:GOLD ratio will reach 1:1 in the end. This is how the overall stock market may slide but gold stocks will outperform, just like they did after the initial 1929 stock market crash. Hang onto your hats, things are about to get interesting.